Nvidia briefly crossed the $4 trillion market value mark on Wednesday, becoming the first company to do so as Wall Street continues to bet big on artificial intelligence reshaping the global economy.
The chipmaker’s stock surged to $164.42 shortly after markets opened, pushing its valuation above $4 trillion. However, it dipped slightly later in the day, closing at $162.88 — just under the milestone. Shares still gained 1.8% for the session.
“The market has an incredible certainty that AI is the future,” said Steve Sosnick of Interactive Brokers. “Nvidia is certainly the company most positioned to benefit from that gold rush.”
Nvidia, led by CEO Jensen Huang, now holds a market cap larger than the GDP of France, the UK, or India — a sign of how strongly investors believe in the future of AI-driven innovation, robotics, and automation.
The California-based company’s rise has helped lift broader markets, outperforming major indices and boosting investor confidence. Some of this strength also reflects easing trade concerns after U.S. President Donald Trump softened earlier harsh tariff measures that had rattled global markets in April.
Even as new tariffs were announced recently, markets remained stable, with the tech-heavy Nasdaq hitting a record high on Wednesday.
“You’ve seen the markets walk us back from a worst-case scenario in terms of tariffs,” said Angelo Zino, technology analyst at CFRA Research.
Despite challenges like U.S. export restrictions on advanced chips to China, Nvidia has found growth opportunities elsewhere — such as a recent deal to build AI infrastructure in Saudi Arabia, signed during Trump’s state visit in May.
“We’ve seen the administration using Nvidia chips as a bargaining chip,” Zino added.
Nvidia’s climb to $4 trillion follows a steady growth trend over the past two years, fueled by enthusiasm around AI. In 2025 alone, its shares are up over 21%, far outpacing the Nasdaq’s 6.7% gain.
Huang, originally from Taiwan, has impressed investors with breakthrough developments like the company’s GPUs — essential to generative AI technologies powering autonomous vehicles, robotics, and more.
Nvidia also launched its next-gen Blackwell technology, which enhances computing power. One notable advancement includes “real-time digital twins,” which are transforming industries such as manufacturing and aerospace by accelerating product development.
However, the company faced a setback earlier this year when Chinese startup DeepSeek disrupted the AI space with a low-cost, high-performance model, briefly wiping out around $600 billion from Nvidia’s market value.
Still, Huang welcomed DeepSeek’s entrance and has pushed back on U.S. chip export limits.
Nvidia posted nearly $19 billion in earnings in the latest quarter, despite taking a $4.5 billion hit from export controls. The earnings report showed that demand for AI remains strong, with major players like Microsoft, Google, Amazon, and Meta competing for AI dominance.
A UBS survey recently revealed that Nvidia continues to widen its lead over competitors.
Zino noted that the latest rally reflects investors’ deeper understanding of DeepSeek’s role, which may have boosted interest in advanced AI models without threatening Nvidia’s core business.
Nvidia remains a leader in developing “AI agents” — advanced generative AI models capable of reasoning and inference.
“Overall the demand landscape has improved for 2026 for these more complex reasoning models,” said Zino.
Still, the fast rise of AI is bringing change. Companies like Ford, JPMorgan Chase, and Amazon have begun openly discussing how AI may lead to white-collar job cuts, according to a media report.
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